Cerberus buys Yellow Pages biz for $950M

AT&T Inc. is selling its Yellow Pages business to the private equity firm Cerberus Capital for $950 million and a minority stake in the new entity that will run the business.

The Dallas company says it wants to focus on its core wireless, IP and cloud-based businesses. The transaction will have a minimal effect on its earnings this year.

Cerberus is paying AT&T Inc. $750 million in cash and a $200 million note, plus a 47% stake in YP Holdings.

The assets being sold include the print directories, websites and mobile app which generated revenue of $3.3 billion last year. It excludes the recently formed AT&T AdWorks, which sells advertising offerings across online, mobile and TV.

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